Project Cost Estimation & Budget Planning
One of the project Cost estimation technique is called ATR – Adjustable Testable Requirements.
Phasewise recommended - Cost split
|
SDLC Phase |
Recommended |
|
Req Anlaysis |
15% |
|
High Level Design |
15% |
|
Coding & Unit
Testing |
50% |
|
Integration Testing |
10% |
|
Software Testing |
10% |
|
Other Activity |
Recommended |
|
Project Management |
15.0% |
|
Change Request without payment |
5.0% |
|
Configuration Management |
5.0% |
|
Internal KT & Training |
5.0% |
|
Effort for unforeseen risks,
situations |
10.0% |
Different Types of Costs
|
Cost Types |
Description |
|
Fixed Costs |
Setup costs, Rental
costs, and other related costs |
|
Variable Costs |
Hourly labor, Cost of
material, Cost of supply |
|
Direct Costs |
Employee salaries and
benefits, Materials costs, Equipment rental, Project related travel |
|
Indirect Costs |
Management (Project
Manager / Architect), Building rental, Utilities (EB, Telephone, Water) |
|
Sunk Costs |
Incurred on project,
but not produces value towards the project objectives. Unrecoverable |
Costs Budget Planning - Categories
·
Prior Year Claims
·
Hardware (Common Projects)
·
Software
·
Software Licenses Extension
·
Contractors
·
Team Outing / Entertain
·
Travel (Self & Associate)
·
Training for Associates
·
Certifications
·
Rewards & Recognition
Tags:
#CostEstimation , CostBudgeting , #ProjectManagement
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